Two appeals were heard together regarding whether the equitable doctrine of laches can defeat a first party insurer's loss-transfer claim under s. 275 of the Insurance Act.
In both cases, the first party insurers delayed several years before requesting indemnification from the second party insurers.
The Court of Appeal held that the defence of laches cannot be invoked against a statutory loss-transfer claim, as it is a claim for legal relief subject to the Limitations Act, 2002, which no longer contains a laches-saving provision.
Furthermore, even if laches were available, the second party insurers failed to demonstrate acquiescence or actual prejudice.
Lombard's appeal was dismissed and TD's appeal was allowed.
